The Arizona legislature has approved a bill to establish a public Bitcoin reserve, pending approval by Democratic Governor Katie Hobbs.
If passed, this bill could make Arizona the first state to integrate Bitcoin into its public investments.
The final decision rests on the possible veto by the governor, in a politically tense context despite recent easing of budget disputes.
The Arizona Governor: the final step before the Bitcoin reserve
Arizona is closer than ever to making history in the crypto world. The State’s lawmakers have approved a bill to establish a Bitcoin reserve, a milestone that other states have yet to reach. The final word now lies with Democratic Governor Katie Hobbs, known for her tendency to veto proposals.
A political victory for Bitcoin supporters
This bill was mainly passed thanks to Republican support, and it aims to integrate digital assets into the state’s public investments. If Hobbs approves the measure, Arizona could surpass the federal administration, which is still in the process of counting reserves before establishing its own national reserve desired by President Donald Trump.
The bill was passed on Monday at the State House of Representatives with 31 votes in favor and 25 against, with the exceptional support of three Democrats. To date, other states such as New Hampshire have made progress on similar projects but have failed to finalize their legislation.
A suspense surrounding Governor Hobbs’ veto
Katie Hobbs has a strained relationship with Republican legislators, mainly due to budget disputes. Last month, she announced that she would veto any bill until a bipartisan solution was found to protect funding for disabled care in her state. This crisis now seems to be resolved after the recent signing of a law on this financing issue.
However, the governor has already vetoed numerous bills since the beginning of the year, and the creation of a Bitcoin reserve does not have unanimous support in her political camp. If she rejects the project, Arizona will have to wait until next year to try again.
A symbolic step towards institutional adoption of Bitcoin
The initiative in Arizona illustrates the rapid evolution in the perception of Bitcoin within US public institutions. By taking the lead, the state sends a strong signal: Bitcoin is no longer just a speculative asset but a potential component of the financial strategy of local governments.
Of course, this is contingent on clearing the final political hurdle.
